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Feb 06
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LONG
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Ed Yardeni
President, Yardeni Research
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The market is cheering the "arms dealers" of the AI war. While Amazon (the spender) fell 8%, Nvidia (the seller) rose 7%. The companies *selling* the tools and infrastructure for the AI build-out are the immediate beneficiaries of the $650 billion spending spree. They receive the cash flow now, while the hyperscalers take the risk on future profitability. Nvidia up 7% on the same day Amazon dropped 8%. If hyperscalers cut spending due to lack of ROI, vendor revenues will collapse. |
CNBC
Market bounce back has to do with spending hy...
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